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Thanks for the link. It doesn't inspire confidence in the bloke. Especially if he couldn't be bothered reading the Henry Tax Review.

I'm not particularly familiar with Steve Keen or his work. What's this obsession with variables?

Thanks HiEquity, I appreciate your agreeable post and I understand. That's not to say that all of the hostility comes from a position of enlightenment. That however is not our issue. I disagree, economists is acutely aware of this. The problem is the scope and predictability of intervention.

I see your point now. It makes sense from a PPR perspective to have as much equity as possible when buying. It certainly narrows the opportunity cost. With regard to deflation, I agree that Australia has the option to devalue. If you did have cash on hand in this scenario you'd want to buy...

The title on the forum is 'Property Market Economics'. I've enjoyed reading some interesting posts from some excellent posters on the topic. All these posts about trolling are in themselves trolling. Regarding any substantive points in your contribution: - You're correct, there are yielding...

Is this ignoring the 'rent' on the mortgage capital though? i.e. mortgage interest. I agree that most people don't think of mortgage interest as rent but I'm curious as to which figure you're comparing to.

Normally I'd use my inbuilt ignore function for posts like this but you've illustrated perfectly an attitude problem shared with some others. If you'd read the thread, you'd find the issue of leverage and impact on magnitude of positive and negative risk has been dealt with. Thanks for your...

The Henry report made a lot of good theoretical suggestions but they were also politically toxic. The time to change negative gearing would have been while it was still a safety net and not yet a structural support. There may come a time when it becomes politically palatable to change this...

And if there is serious deflation?

An acquaintence had a review with a UK bank in Ireland about 6 months ago as part of their triage process. Both parties came into the meeting with an axe to grind. The bank wanted their money back and the consortium wanted a rate reduction. The bank relented in the end when they saw the guys...

Traditionally was government. Now includes professionals involved in asset recovery and insolvency. Secure is a relative term obviously. Even government jobs are not now ~100% secure because of cuts.

Absolutely, lenders in failed economies are actively lending to the right people in this fashion to dilute the toxic sludge on their books. Right people being low LVR, low loan to income ratio and 'secure' employment. I use the term active because there are very few people who meet those...

Maybe you could start a support group. You're trolling now, move on.

You make a valid point, is this from a mainstream lender? What's the potential downside for these lenders offering 95% loans? Don't they fob off part of the risk too? You can find car insurance companies that will insure you for half the price of the mainstream insurers but good luck claiming...

Sounds like you'll have a big chunk of equity from the start. Should save you a lot of money. What's the issue with the market information in Kennedy Bay? Is it just low transaction volumes? I lived in Sydney for a while, it's great as a playground for the young free and single if you can get...

After the GFC there were some good deals around on used sports cars. Picked one up myself, it's a complete waste of money but you have to enjoy your cash sometime. You wouldn't expect your financial planner to put your money at risk without objectively looking at the likely scenarios for...

Important point before I go, there is a big difference between a term deposit and a demand deposit. It might be too boring for some here but I'll point it out anyway. A demand deposit is lower risk because it has lower/no exit costs. Hence why term deposits should yield higher returns to make...

I'm not sure where you're taking that from. I've said that leverage increases negative risk in direct proportion to positive risk. Whoah! They're not directly comparable and no where have I suggested they are. Your post is a perfect example. You've distorted my points and responded to these...

In the prevailing conditions the positive and negative risks of property investment opportunities in the markets where the overwhelming majority of people want to live make the opportunity less attractive than alternative investments. For illustrative purposes I have chosen to show that even a...

Before you engage in further brow beating danc you might like to read again Bill's exact question quoted above.